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<br />AUG~12-98 WED 17:17 <br />," <br /> <br />P. 02/06 <br /> <br />l /\ <br />... .. <br />.' <br />, . <br />I. <br /> <br />C~ ~ CLIMAX MOLYBDEN~~on9!?N~~~a~! <br /> <br />CoLORADO OPEJlAl1QNS <br />Climax Mine <br />Hwy. 91 <br />Climax. COlorado 8D:J4!=l <br />(719) <186-:2150 <br />l=~x'(719) 4BS-~~51 <br /> <br />August 12. 1998 <br /> <br />Mr. Allen Sorenson <br />Division of Minerals and Geology <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br /> <br />Dear Mr. Sorenson: <br /> <br />The following discussion is presented to the Division of Minerals and Geology by the Climax <br />Molybdenum company as a set of agreements and findings concerning contingencies and <br />performance measures for final acceptance of the Application for Warranty Reduction, SR-002, on <br />Eagle Park Reservoir. Documentation submitted on October 29. 1997 and subsequent <br />correspondence between Climax and the Division dated January 9, March 10, and April 6, 1998, <br />along witn a five-year dialog over reclamation project activities in the Eagle basin at the Climax Mine. <br />support the plan presented below. Climax seeks a statement on the part of the Division of Minerals <br />that a post-mining beneficial land use of developed water resources has been achieved on <br />conditional approval as described in this letter. Climax extends appreciation to the Division for <br />working to complete tnis proJect. <br /> <br />Introduction <br /> <br />On June 8, 1998, representatives of the Climax Molybdenum Company (Climax), the Colorado <br />Division of Minerals and Geology (DMG), and the Colorado Water Quality Control Division (WaCO) <br />met to discuss the pending delivery of water from Eagle Park Reservoir to the East Fork of the Eagle <br />River. In attendance at the meeting were Phil Hegeman, Don Holmer and Dennis Anderson of the <br />WQCD. Allen Sorenson of OMG, Bryce Romig representing Climax, and Patricia Nelson, consultant <br />to Climax from CH2MHiII. The crux of the discussion aimed :it finding meaningful targets and criteria <br />to evaluate long-term water quality protections in the East Fork of the E3gle River during delivery of <br />water from Eagle Park Reservoir. <br /> <br />Eagle Park Reservoir is located at the Climax Molybdenum Company's Climax Mine located on <br />Fremont Pass, Climax, Colorado. Climax, under a Colorado Division of Minerals and Geology <br />reclamation permit, has worked with the DMG during a model reclamation project af the reservoir. <br />Initiated in 1993, the project saw the removal of approximately 1.2 million cubic yards of .oxide tailing <br />material from the former 4-Dam Oxide Tailing Impoundment toward conversion of the tailing pond into <br />a fresh water storage facility. The reservoir will be used in an exercise of water rights for delivery of <br />water to users in the Eagle River basin. While current water quality shows that water quality <br />stanaaras 01 tne Eagle River nave been achieved through the reclamation effort, all parties concur <br />that a desired long-term objective for the project is assurance that water delivery to the East Fork of <br />the Eagle River from Eagle Park Reservoir will be protective of down-stream beneficial water use. <br />This document is intended to provide the framework under which this assurance can be <br />demonstrated to obtaJn final release. <br /> <br />Relevant Aoreements of the Attendina Parties <br />Climax gathered the following understandings from the June 8th discussion: <br />